In a recent development, Azon Medical, LLC, a company distributing medical devices, has agreed to cough up just over a million dollars to settle claims of falsely billing Medicare for acupuncture devices. According to a press release on the U.S. Attorney’s Office website, this settlement resolves allegations of Azon's involvement in improper Medicare claims.
The devices in question, branded AnSiStim, were marketed and sold from around September to October in 2016. They were inappropriately billed under a code for implantable neurostimulator devices, that require surgical placement—a stark contrast to AnSiStim’s adhesive application. U.S. Attorney Jacqueline C. Romero pointed out Medicare was billed "hundreds of thousands of dollars for improperly billed acupuncture devices." These devices, meant for single use and non-surgical affixing behind a patient's ear, did not meet Medicare's criteria for reimbursement, which excludes acupuncture and related devices.
The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the U.S. Attorney’s Office took the lead on the investigation, with a clear message for distributors in the medical device industry. "Marketers and distributors need to provide accurate and truthful information regarding their devices’ eligibility for Medicare reimbursement," stated Special Agent in Charge Maureen Dixon, in charge of HHS-OIG. The collaboration aims to safeguard Medicare from such fraudulent billing practices going forward.
Despite settling, Azon has not admitted to any wrongdoing; the allegations resolved by the agreement remain as such without a determination of civil liability. This case showcases the ongoing effort by authorities to enforce honesty and integrity within the healthcare billing sector, ensuring that resources are appropriately allocated for the treatments and services genuinely affiliated with established Medicare guidelines.
